Write a report commenting on the performance and position of Tom Ltd and Jerry Ltd

a) Calculate the following ratios for Tom Ltd and Jerry Ltd ensuring you show your formula and workings: (6 x 1.5 = 9 marks) i. Return on assets ii. Return on equity iii. Profit margin iv. Current ratio v. Asset turnover vi. Debt ratio

b) Write a report commenting on the performance and position of Tom Ltd and Jerry Ltd. Include a summary table of the results you have used in your discussion. (7 marks)

c) With reference to your ratio calculations, comment on the importance of identifying accounting policy choices when comparing ratios for entities, or when comparing ratios for a single entity over time. (3 marks)